Bitcoin (BTC) rebounded to around $121,500 after dipping below $120,000, but short-term charts and market sentiment suggest upward momentum may be limited.
On hourly charts, BTC’s 50-, 100-, and 200-candle SMAs have stacked bearishly, while a series of lower highs points to weakening buying pressure.
Market risk aversion is also visible in key ETFs. The iShares iBoxx High Yield Corporate Bond ETF (HYG) recently broke below its bullish trendline from May and the 50-day SMA, signaling declining appetite for high-yield bonds.
Banking stocks mirror the cautious tone. The Financial Select Sector SPDR Fund (XLF) shows signs of a rounding-top formation, and the regional banking ETF (KRE) has dropped below its April bullish trendline, reflecting sector-wide slowdown.
Key levels: BTC finds immediate support at $120,000 and $118,000, while surpassing $124,000 would ease fears of a deeper pullback. The combination of technical weakness and cautious ETF signals highlights a risk-averse market environment.
